[SMM analysis] the price of yellow phosphorus in Yunnan has increased obviously, and the price of iron and lithium will continue to rise in the future.

Published: Jul 31, 2021 16:31

SMM7 March 30: the price of lithium iron phosphate fluctuated in July. By the end of July, the average price of lithium iron phosphate power had risen to 52000 yuan, up about 2000 yuan / ton from the average price of 50,000 yuan per ton at the beginning of the month.

At the beginning of the month, some downstream battery enterprises stored material stocks for the second half of the year, demand increased, iron and lithium prices rose slightly. By mid-July, the prices of lithium iron phosphate raw materials, lithium carbonate and iron phosphate all rose sharply. In terms of iron phosphate, Yunnan began the second round of power restrictions in mid-July. As the production concentration of phosphorus chemical industry, this power restriction resulted in a sharp decline in the operating rate of local yellow phosphorus manufacturers, a shortage of spot supply and an upward price. With the rise in the price of raw materials, the price of iron phosphate in mainstream iron phosphate manufacturers has been raised to about RMB1.35-14500, which is generally upwards of RMB 1000-2000. Some manufacturers quoted prices up to 1. 6-17000 yuan, but there were fewer transactions in this price range. At the same time, in the middle of the month, some traders of lithium carbonate in the upper reaches hoarded and sold goods, and the price of industrial carbon went up, while the downstream lithium iron manufacturers had less iron phosphate inventory, and some of them replenished the stock in the middle of the month, driving the price of iron and lithium up.

At the end of the month, most yellow phosphorus factories in Yunnan were notified of power cuts again, the operating rate declined, the industry inventory was on the low side, and some phosphoric acid factories in Sichuan and Hubei stopped production. At the end of the month, the prices of most ferric phosphate manufacturers went up again, and the mainstream quotations went up to about 16000 yuan / ton. Most downstream lithium iron phosphate plants also intended to increase, with prices rising at the current raw material end, and downstream demand not reduced. Under the condition that the profit of the iron lithium plant is still thin and the supply and demand is still tight, it is expected that the future price of lithium iron phosphate will still rise at the beginning of the month with the replenishment of downstream battery enterprises.

SMM New Energy Research team

Mei Wangqin 021-51666759

Huo Yuan 021-51666898

Liu Xiaoyi 021-51666716

Yuan Ye 021-51595792

Ren Pengfei 021-51595913

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
SK On Consolidates Georgia Operations into Single Production System
Apr 5, 2026 17:13
SK On Consolidates Georgia Operations into Single Production System
Read More
SK On Consolidates Georgia Operations into Single Production System
SK On Consolidates Georgia Operations into Single Production System
SK On will transition to a unified production system centered on its SK Battery America (SKBA) operations in Georgia to improve efficiency in North America. According to the company on the 3rd, starting April 6 (local time), production volumes from SKBA’s first plant will be transferred to the second plant. In addition, part of the second plant’s production lines will be converted from electric vehicle (EV) battery manufacturing to energy storage system (ESS) production. The Georgia Plant 1 has an annual capacity of 10GWh and began commercial operations in the first quarter of 2022, while Plant 2 has a capacity of 12GWh and started operations in the fourth quarter of 2022.
Apr 5, 2026 17:13
LG Energy Solution Joins Global Automotive Software Marketplace SDVerse as First Battery Maker
Apr 5, 2026 17:12
LG Energy Solution Joins Global Automotive Software Marketplace SDVerse as First Battery Maker
Read More
LG Energy Solution Joins Global Automotive Software Marketplace SDVerse as First Battery Maker
LG Energy Solution Joins Global Automotive Software Marketplace SDVerse as First Battery Maker
LG Energy Solution announced on April 3 that it has joined the automotive software open marketplace platform SDVerse, becoming the first battery manufacturer to participate. SDVerse is a B2B vehicle software platform founded by General Motors, Magna International, and Wipro. The platform provides an open ecosystem where automakers, global suppliers, and software developers can trade software solutions, supporting the transition toward software-defined vehicles (SDVs).
Apr 5, 2026 17:12
SK On Terminates Natural Graphite Supply Agreement with Westwater
Apr 5, 2026 17:11
SK On Terminates Natural Graphite Supply Agreement with Westwater
Read More
SK On Terminates Natural Graphite Supply Agreement with Westwater
SK On Terminates Natural Graphite Supply Agreement with Westwater
According to Westwater Resources on the 3rd, it received a contract termination notice from SK On on March 31 (local time). Under the agreement, SK On had planned to source up to 34,000 tons of natural graphite produced at Westwater’s Kellyton facility in Alabama between 2027 and 2031, but the plan has been canceled following the termination.
Apr 5, 2026 17:11
[SMM analysis] the price of yellow phosphorus in Yunnan has increased obviously, and the price of iron and lithium will continue to rise in the future. - Shanghai Metals Market (SMM)